Part 13Additional relief for expenditure on research and development
Chapter 2Relief for SMEs: cost of R&D incurred by SME
Qualifying expenditure
1052Qualifying expenditure on in-house direct R&D
1
A company's “qualifying expenditure on in-house direct research and development” means expenditure incurred by it in relation to which each of F2conditions A, B, D and E is met.
2
Condition A is that the expenditure is—
a
incurred on staffing costs (see section 1123),
b
incurred on software F4, data licences, cloud computing services or consumable items (see section 1125),
c
qualifying expenditure on externally provided workers (see section 1127), or
d
incurred on relevant payments to the subjects of a clinical trial (see section 1140).
3
Condition B is that the expenditure is attributable to relevant research and development undertaken by the company itself.
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5
Condition D is that the expenditure is not incurred by the company in carrying on activities which are contracted out to the company by any person.
6
Condition E is that the expenditure is not subsidised (see section 1138).
7
See sections 1124, 1126 F3to 1126B and 1132 for provision about when expenditure within subsection (2)(a), (b) or (c) is attributable to relevant research and development.